If you read our last post about buying property in Spain then you know we think its a great idea! Spain is one of the most beautiful places we’ve ever been, and we can’t wait to purchase a home there! After visiting Spain, we wrote a blog post about all the things we learned, but we wanted to know more! We always want to be as educated as we can in order to help our clients make the best decisions in their home buying experiences. Ever since Angie earned her CIPS designation international buying is extra important to us. We had the opportunity to speak to Realtor, Anna Rubio from Keller Williams Capital Properties in DC who has also earned her CIPS designation and works often in Madrid, and she helped answer some of our questions about purchasing in Spain. Now we have someone we can refer our amazing clients too if they choose to purchase in Spain.

The process of becoming a homeowner in Spain

When you begin your. process of purchasing a Spanish property you’ll make an offer on the place you love with the seller’s agent. In Spain the buyer deals with the seller’s agent directly, because typically buyers are unrepresented, but you can choose be if you want (which you know we always recommend). If your offer is accepted then you and the seller would sign a preliminary contract and you would pay a deposit, usually around 10%. The contract is signed in front of a notary (in Spain you have a notary help you with the legal paperwork). You can choose your mortgage provider, but the seller’s agent can usually steer you in the right direction if you don’t know any in the area.

Increase your goal and shoot to become a Spain resident

In order to buy a property in Spain you need a NIE. This is a number assigned by the National Police to all foreigners that want to purchase property, or become Spanish residents. It can be difficult to obtain from overseas if you are not an EU resident and typically needs to be done with the Spain police, in person. EU partners are able to do it easier and more quickly. Just think, if you were already a resident it would be so much easier! If you’re waiting until you purchase your dream home there to become a resident then you should know Spain offers an awesome program that if you purchase property that is $500k worth in Euros, you can become eligible for your resident visa! How awesome to buy a home you love in a beautiful country while all becoming a resident of said country!

Best locations to live in Spain

Spain has some amazing cities to choose from, especially for retiring, but we all want to start retirement early, right? One of the top cities to live in is Barcelona (the second largest in Spain) known for its coastal, but historical views. You get to go to visit the beach and beautiful architecture all in one day, who could ask for anything more? Another great city to purchase in is Madrid. We visited Madrid while in Spain and it was absolutely beautiful! Madrid is the capital of Spain and known for its friendly locals and multicultural views. Malaga is another city that is absolutely breathtaking and would be a wonderful place to purchase a property and become a resident of Spain. It is on the southern coast of Spain with views of the glittering Mediterranean Sea. Its full of Spanish culture and a must see, even if only for a visit.

Malaga, Spain

We can’t wait to start referring you guys and make your dream of owning in Spain a reality! If you are interested in knowing more please fill out the form below or contact Angie at 949-338-7408.

Travel much? So many of our client’s do, which is why I recently got my CIPS designation. Having international connections with real estate agents around the world is important so our team can make sure you’re real estate needs get served…literally everywhere! I recently had the pleasure of attending the SIMA convention in Madrid and had a chance to network while learning all about the process of buying and selling in Spain.

Fun fact: Spain is in the top 3 countries where foreigners make purchases. Not surprising, because it’s beautiful. We’ll save that for a different post 😉

The process of buying a property in Spain

First things first, financing. It does not make sense to begin your search until you know how much you are comfortable spending. Of course, cash is easiest. But this is a post for normal people, not cash cows…

Options for financing foreign property

So… you have a couple options. HELOC is a great one if you have more than 30% equity in your current home. Every time I mention the acronym HELOC (Home Equity Line of Credit) I feel it necessary to remind you to ONLY do this for appreciating assets. Do not use your HELOC for cars, boats, or babes. Only to buy more property. ONLY.

If HELOC is not an option for you, foreign financing is also currently available in Spain. Here’s a quick video we recorded with Lola from B. S. Bank in Madrid:

Current interest rates may actually be better than your HELOC, so it’s something to consider!

Finding your home in Spain

Like most countries, first steps are determining an area for your new home or vacation rental, and then selecting a buyer’s agent. Make sure to consider all the factors when determining your area. Here’s just a few to think about:

Proximity to airport

Walkable to restaurants

Local tourist attractions & festivals

Amount the property could rent for, both nightly & monthly

Noise levels (planes, trains, bars, church bells)

Crime statistics

Parking accommodations

If you’re vacation renting, does the area embrace that?

Once you’ve got an area in mind, it’s time to get connected with a Realtor who works that region. Just like I mentioned in our post about how to buy property in Costa Rica… a quality agent is crucial in these countries where they don’t offer a Multiple Listing Service or a centralized listing database. We never recommend DIY buying, especially in a foreign land. You need someone who will actually go scout for you and someone who gets along with the other agents in the area so your chances of obtaining your favorite property are higher.

It’s always our pleasure to interview and pair people with quality agents. Please fill out the form below if you would like to find an English-speaking match in your desired area of Spain.

If you’re still nervous about buying overseas, or have any questions about getting started on the process, we would be happy to help. Contact Angie at 949-338-7408!